All Forum Posts by: Joshua B.

Your instincts are correct - you're not going to be able to get a loan on this property from just about any lender if there are liens on the property (presumably tax-related). I would take her statement that they've been "cleared up" with a grain of salt. But if you are confident that she's correct, why don't you just make clean tile a condition to closing? If she's right then it's all good. If she's wrong then you're not making a mistake.

Feel free to reach out. I'm a RE attorney and deal with title issues with some frequency.

 Downtown Plymouth is the best! Moved out about two years ago and I miss it and want to be back. If you hear of any off market leads,  let me know!

Couple things. There can be tax consequences for future transfers of the property based on who the owner(s) of the LLC are and who the property is being transferred to.

Also, if you're paying cash, it's fine and relatively easy to put the property in an LLC. If you're hoping to use a conventional loan, you won't even be allowed to purchase with an LLC. Some people buy in their own name and then transfer the property to an LLC but you're not really supposed to do that as it generally is a breach of the loan documents (Google a 'due on sale clause').

I'm a Michigan attorney and I don't use an LLC for my purchases (yet). Maybe in a few years when I'm older and (hopefully) wealthier but not now. I just keep a liability umbrella policy on myself.

I definitely wouldn't mix your rental business with your photography business. Better to keep those separate.

 I've done some deals in Ann Arbor. Also, @Sarah Lorenz is pretty plugged in to what's going on in the area. 

I've currently got a 4.49% HELOC rate through a Michigan based credit union.

 Lol...well you’re illegal in Michigan

 Don't have a buyer yet so if you know of anyone looking let me know. Also open to wholetailing it.

Investment Info:

Single-family residence fix & flip investment in Ann Arbor.

Purchase price: $225,000

Buying this little 3/1 in Ann Arbor with a plan to fix it up and flip it or rent it out, whichever seems best

What made you interested in investing in this type of deal?

Solid price

How did you find this deal and how did you negotiate it?

Craigslist. Reached out to owner, toured property, then made an offer.

How did you finance this deal?

Will be land contract with 3 month term to allow for renovation, then BRRRR it

How did you add value to the deal?

Reno

What was the outcome?

We'll see

Lessons learned? Challenges?

We'll see

The government of the state of Michigan regulates real estate for many reasons, one of them being to protect its citizens. The government wants people trained properly in real estate law to further that goal. That's why there are licensing procedures.

People on this forum will read the statute and think "how could I read this to avoid getting a license". That's a mistake. The way to look at it is from the regulator's point of view. That is, will regulators view wholesalers just like they view regular agents? The answer is - of course! Wholesaling, just like a vanilla purchase and sale, has a substantial impact on the most valuable investment that the average citizen has. If anything, it's a more convoluted way of dealing with real estate and has more potential for confusion/error/etc.

In what will hopefully be a wake-up call for AirBnb, one of the hosts was pulling bait-and-switches across the country. He'd show pictures of a nice place, get a reservation, call right before the stay and say that there are plumbing issues, then offer a replacement property that's a dump. Rinse, repeat.

https://www.vice.com/en_us/art...

What's more, he's a BP member! Looks like the FBI has gotten involved now. Not sure if Shray Goel is still active on the forums, but BP members may not want to follow his "Buy, don't Rebab, Rent, Ruse, Repeat" method.